LIVE
PDD
PDD Holdings Inc. · Technology - E-Commerce & Cross-Border Commerce
$79.56
-18.27% this month
VERSUS
⟷
COMPARE
MELI
MercadoLibre, Inc. · Technology - Latin American E-Commerce & Fintech
$1,635.15
+2.53% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
PDD
3
MELI
1
Comparison scoreboard
PDD LEADS 3/5AI Score
PDD 42.0
MELI ✓62.8
1Y Return
PDD ✓-22.19%
MELI -31.95%
Fwd P/E
PDD ✓0.95
MELI 27.19
Target Up.
PDD ✓+48.51%
MELI +39.47%
Op. Margin
PDD N/A
MELI 6.91%
Metrics last refreshed: 6/20/2026
Quick take
PDD vs MELI Stock Comparison: AI Score, Valuation, Performance and Upside
PDD Holdings (PDD) is a Chinese e-commerce company with dominant domestic Pinduoduo and disruptive international Temu cross-border commerce, while MELI (MercadoLibre) is Latin America's dominant e-commerce and fintech ecosystem leader. PDD targets global value-conscious consumers with China-manufactured goods; MercadoLibre builds the financial and commerce infrastructure for the underserved Latin American market.
PDD vs MELI is China-to-world cross-border manufacturing commerce (Temu's disruption of global retail) versus Latin American digital commerce and fintech platform building (MercadoLibre's regional dominance) — both emerging market e-commerce leaders but serving entirely different geographies and consumer dynamics.
Live analysis · updated 6/20/2026
PDD holds the edge across 3 of 5 key metrics in this comparison. PDD leads on both 1-year return (-22.19%) and forward P/E (0.95x vs 27.19x for MELI), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for PDD (+48.51%) than for MELI (+39.47%).
Normalized 1Y performance
PDD
MELI
Recent returns
PDD
MELI
Analyst price targets & sentiment
PDD · 34 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.9/5.0)
Price target range
analyst low$86.90
analyst high$170.27
analyst mean$118.15
current price$79.56
+48.5% upside to analyst mean
MELI · 25 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.6/5.0)
Price target range
analyst low$1,868.21
analyst high$3,200.00
analyst mean$2,216.96
current price$1,635.15
+39.5% upside to analyst mean
Who should consider this stock?
PDD may suit investors who:
- →Want exposure to China's value-goods commerce through Pinduoduo and global cross-border direct-from-manufacturer e-commerce through Temu's rapid international expansion
- →Value PDD's asset-light marketplace model and capital efficiency as a lower-cost operating structure versus Amazon or MercadoLibre's logistics investments
- →Believe Temu's international expansion can sustain after initial marketing-driven launch phase, creating a durable global commerce position despite trade headwinds
MELI may suit investors who:
- →Want the dominant Latin American e-commerce and fintech platform serving the region's rapidly growing digital economy and large underbanked population
- →Value MercadoLibre's vertically integrated ecosystem (marketplace, payments, lending, logistics) as creating multi-layered competitive advantages that are hard to replicate
- →See Latin American fintech and commerce penetration growth as a decade-long secular opportunity in markets where traditional banking and commerce infrastructure is underdeveloped
Performance & AI score
| Metric | PDD | MELI |
|---|---|---|
| AI score | 42.0 | 62.8 |
| AI rank | #899 | #88 |
| Latest close | $79.56 | $1,635.15 |
| 1M return | -18.27% | +2.53% |
| 6M return | -24.23% | -14.67% |
| 1Y return | -22.19% | -31.95% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | PDD | MELI |
|---|---|---|
| 1Y ago | $7.78K (-22.2%) started 2025-06-18 | $6.81K (-31.9%) started 2025-06-18 |
| 5Y ago | $6.36K (-36.4%) started 2021-06-18 | $11.14K (+11.4%) started 2021-06-18 |
| 10Y ago | $29.8K (+198.0%) started 2018-07-26 | $121.04K (+1110.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | PDD | MELI |
|---|---|---|
| Market cap | $113.25B | $80.59B |
| Trailing P/E | 8.36 | 42.02 |
| Forward P/E | 0.95 | 27.19 |
| Price/Sales | 0.26 | 5.62 |
| EV/Revenue | -0.71 | 2.75 |
| Analyst target | $118.15 | $2,216.96 |
| Target upside | +48.51% | +39.47% |
Growth, profitability & risk
| Metric | PDD | MELI |
|---|---|---|
| Revenue growth | 11.00% | 49.00% |
| Earnings growth | -14.90% | -15.60% |
| EPS growth | -14.90% | -15.60% |
| FCF margin | +16.19% | -12.91% |
| Operating margin | N/A | 6.91% |
| Profit margin | 21.62% | 6.04% |
| ROIC proxy | 25.40% | 31.26% |
| Return on equity | 25.40% | 31.26% |
| Dividend yield | 0.00% | N/A |
| Beta | -0.03 | 1.35 |
| Debt/equity | 1.21 | 169.98 |
| Current ratio | 2.54 | 1.16 |
| Quick ratio | 2.13 | 0.44 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
PDD max drawdown42.40%
MELI max drawdown40.82%
PDD max wkly drop16.02%
MELI max wkly drop15.16%
5Y risk snapshot
PDD max drawdown80.88%
MELI max drawdown68.64%
PDD max wkly drop38.90%
MELI max wkly drop33.57%
10Y risk snapshot
PDD max drawdown87.41%
MELI max drawdown69.12%
PDD max wkly drop38.90%
MELI max wkly drop33.57%
Performance metrics by period
| Period | Metric | PDD | MELI |
|---|---|---|---|
| 1Y | Growth | -22.19% | -31.95% |
| CAGR | -22.20% | -31.96% | |
| Sharpe ratio | -0.75 | -0.89 | |
| Max drawdown | 42.40% | 40.82% | |
| Max daily drop | 10.38% | 12.70% | |
| Max wkly drop | 16.02% | 15.16% | |
| 5Y | Growth | -36.37% | +11.38% |
| CAGR | -8.65% | +2.18% | |
| Sharpe ratio | 0.13 | 0.20 | |
| Max drawdown | 80.88% | 68.64% | |
| Max daily drop | 28.51% | 16.88% | |
| Max wkly drop | 38.90% | 33.57% | |
| 10Y | Growth | +197.98% | +1110.42% |
| CAGR | +14.83% | +28.34% | |
| Sharpe ratio | 0.47 | 0.66 | |
| Max drawdown | 87.41% | 69.12% | |
| Max daily drop | 28.51% | 16.88% | |
| Max wkly drop | 38.90% | 33.57% |
Business comparison
| Category | PDD | MELI |
|---|---|---|
| Company | PDD Holdings Inc. | MercadoLibre, Inc. |
| Sector | Technology - E-Commerce & Cross-Border Commerce | Consumer Cyclical |
| Industry | N/A | Internet Retail |
| Core business | PDD Holdings operates Pinduoduo (China's second-largest e-commerce platform focused on agricultural products, value goods, and group buying) and Temu (a global cross-border commerce app selling Chinese manufacturer goods directly to international consumers at very low prices). | MercadoLibre is Latin America's leading e-commerce and fintech company — operating the dominant online marketplace (Mercado Libre), payment platform (Mercado Pago), lending (Mercado Credito), logistics (Mercado Envios), and advertising across 18 Latin American countries led by Brazil, Mexico, and Argentina. |
| Investor focus | Investors track Pinduoduo's China GMV and monetization, Temu's international user growth and revenue, the sustainability of Temu's value proposition against trade tariffs and regulatory scrutiny, and PDD's overall profitability trajectory as Temu marketing spend normalizes. | Investors track MercadoLibre's GMV (gross merchandise volume) growth, Mercado Pago total payment volume and fintech revenue, net revenue growth, operating leverage as the business scales, and expansion of credit/lending as a high-margin financial services layer on top of the commerce platform. |
PDD strengths
- →Temu's cross-border direct-from-manufacturer model disrupted global e-commerce with prices dramatically below competitors — becoming the most downloaded app in multiple Western countries within 12 months of launch
- →Pinduoduo's agricultural and value-goods focus captured China's enormous rural and lower-income consumer market underserved by Alibaba and JD.com
- →Capital-light marketplace model (unlike Amazon's warehousing approach) means PDD doesn't own inventory — factories ship directly to consumers globally
MELI strengths
- →Dominant Latin American marketplace with strong network effects — sellers go where buyers are, and buyers go where sellers are, creating a self-reinforcing commerce ecosystem
- →Mercado Pago has expanded beyond marketplace payments into broader financial services — becoming the leading digital payments and fintech platform in multiple Latin American countries
- →Mercado Credito lending business uses transaction data to underwrite loans to sellers and buyers who lack traditional credit history — a massive untapped fintech opportunity in underbanked Latin America
Risks to watch — PDD
- →De minimis trade exemptions in the U.S. and other markets face legislative challenge — removing these exemptions would significantly increase the effective cost of Temu's cross-border shipments
- →Chinese goods import tariffs (particularly from 2025 U.S.-China trade tensions) could substantially raise Temu's cost of goods for American consumers
- →Heavy marketing spend required to sustain Temu user acquisition may compress PDD's consolidated margins if Temu growth requires ongoing subsidies
Risks to watch — MELI
- →Latin America's macroeconomic volatility — currency devaluation (particularly Argentina peso, Brazilian real), inflation, and political instability create meaningful FX and operating environment risk
- →Competition from emerging local fintech companies, Nubank, and international entrants in Brazil and Mexico for payments and lending market share
- →GMV and revenue reported in USD translate volatile Latin American currency results — currency translation can swing reported growth significantly quarter to quarter
Frequently asked questions
Free public comparison
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.
Related comparisons
More comparisons
Browse all 1,000 comparisons →